Haleon Share Discussion Threads

[unastubbs] 15/8/2022 09:14

it's just possible that gsk turned down ulvr for fear of letting their legal team look at the whole zantac thing thus nixing the chances of even getting the ipo off the ground.

[paul planet_earth] 15/8/2022 09:10

Its getting very, very messy and Haleon may well have to shell out several billion to pay litigation costs around the globe..Especially hard as all their cash is tied up servicing debt £10 billion of it effectively they can't pay it unless they do a rights issue which will dilute the share price probably by another 20% if the $36 billion estimate of global legal liability for all parties involved GSK, Pfizer, and Haleon is reliable.

Absolutely bonkers shambles of a situation!

[paul planet_earth] 15/8/2022 09:05

GSK got greedy thought they would make more through an IPO than the Unilever £50 billion bid offer and the IPO disastrously back fired on them..Now we have the Zantac multi billion litigation costs and scandel to face up to on top as this was a consumer heathcare over the counter drug sold by consumer for years!

[alotto] 15/8/2022 07:57

Did Unilever offer 50 Billions for what Haleon is today, as product range, cash, debt, assets etc? if the answer is yes, why is the market cap only 25B? Or Unilever put in a very generous offer and GSK foolishly declined it?

[halfpenny] 14/8/2022 08:43

Its all a mess with free loading AMERICAN lawyers getting their teeth stuck into GSK and any links. BP cost Billions!!!

[careful] 13/8/2022 21:42

Would this litigation be the reason GSK split the companies?

Offload £10bn of debt and some serious liability.
Explains why they turned down ULVR offer.
They would never have got away with it.

It is beginning to fail the smell test.

[paul planet_earth] 13/8/2022 20:14

'Haleon's terrible start to life on the London Stock Exchange has intensified after the consumer health group admitted it may get caught up in a massive lawsuit involving a heartburn drug in the US.'

'Forecasts from several analysts have also spooked the market, with Morgan Stanley predicting total damages could be as high as £37billion.'
exploded this week.

'The share price reaction goes to show most investors don't bother to read the small print [of the prospectus], so they've been caught off-guard after the potential liabilities hit the news,' said the AJ Bell analyst Danni Hewson.'

'Haleon now seen as a dead man walking and prime candidate for takeover and asset stripping'

[montyhedge] 12/8/2022 14:15

They can't sell until November.

[medieval blacksmith] 12/8/2022 14:07

Just ignore that complete tosh.

[tradermichael] 12/8/2022 13:49

Paul, isnt there a lock-in clause to stop gsk and pfizer from stake selling till Nov 22?

[careful] 12/8/2022 09:46

Perfect market theory assumes that every share price is at the correct level a given time because the market adjusts for known events.

So todays share price is correct after this weeks gloomy worst case scenario panic about the litigation.
This is why research shows that a monkey throwing darts can select a successful share portfolio as well as the shrewdest investor.

It is random.
I will hold assuming that todays share price is neither cheap nor expensive until things become clearer after this panic.

Really we should check in 5 years time, but we are all idiots watching every day.

[paul planet_earth] 12/8/2022 05:45

Pfizer and GSK will be quietly offloading their stake holdings in Haleon in the background as the easiest and quickest way to partially raise up to $45 billion of cash they will need in order to pay the US legal fines and distance themselves from Haleon if they are also a party to historic Zantac sales.

Expect Haleon share price to continue to tumble up to 20% bringing the market cap to sub £20 billion..

This forces Pfizer and GSK hands through the Zantac litigation to exit Haleon leaving Haleon a prime take over candidate and asset stripping target..

At £20 billion plus £10 billion debt, total enterprise value of £30 billion thats £20 billion or 40% less than the £50 billion Unliver offered back in December..

Haleon will be gobbled up within six months with the IPO seen as a complete and utter disaster from the outset, adding £10 billion of GSK debt through debt transfer laboured the business with way too much debt just as interest rates were about to soar with the Zantac issues the final straw!..

Haleon is nothing more than a 'brand name holder' where the sum of the invidual brands is worth more than the business as a whole..

I now expect Haleon (a strange name if ever there was one) to have one of the shortest business history's!...

[timmy11] 11/8/2022 20:58

Haleon told the media it is not a party of the litigation proceedings and it has never marketed the drug in any form in America.

[buoycat] 11/8/2022 13:58

Debt of around £10 billion puts it on a gearing of about 40%. The price was under pressure and has tanked on uncertainty over the Zantac issue, but Haleon not involved apparently. I've topped up. I own convatec which was under 180 a few months ago and tipsters were saying sell. Look at them now.

[topcat37] 11/8/2022 13:53

GSK and Pfizer have each served Haleon with notice of potential claims of indemnification - but indemnification has not yet been determined between the parties, the Haleon spokesperson said.Given Haleon was formed in 2019 and became an independently listed business only last month, the company "is not primarily liable for any claim," the spokesperson added.

[careful] 11/8/2022 12:32

CNBC just stated that HLN have just issued a statement that they have no exposure to the litigation in America.
Can't see it here yet.

Gekko would be buying.

[my retirement fund] 11/8/2022 12:24

Does this not have stupid levels of debt making it well, worthless ?

[cousin jack] 11/8/2022 12:06

"Haleon said it has certain indemnification obligations to GSK and Pfizer, “which may include liabilities "related to OTC Zantac,” in a prospectus ahead of listing its shares in London last month".

What is needed is more clarity from halon re the extent of any indemnity obligation.

[medieval blacksmith] 11/8/2022 11:53

This company is most likely going to be bought out. I would suspect Pfizer to either take the rest or wait for some other to come and offer.

[montyhedge] 11/8/2022 11:31

I thought they could not jump ship until November.

[action] 11/8/2022 11:30

Now gsk more down while this one recovers.